Foreign travellers, investors get more cash in hand
Budget 2025 has proposed higher thresholds for tax deducted at source (TDS) and tax collected at source (TCS). The new thresholds will aid small taxpayers and gig workers. As per the proposal, the TDS limit on dividend income rises from Rs 5,000 to Rs 10,000, and for gig workers, from Rs 30,000 to Rs 50,000.
How did Budget impact tax on virtual digital assets?
Budget 2025: Income tax on cryptocurrency transaction. After Budget 2025 there is no change in taxation of cryptocurrencies as they continue to be taxed at 30% rate with applicable surcharge and cess. Moreover, 1% TDS on crypto transactions above Rs 10,000 for salaried and Rs 50,000 for business transactions will apply.
Budget tightens crypto income norms
Crypto announcements in Budget 2025: The Budget 2025 has proposed to tighten certain rules for crypto trading. As per the amendments made, income from VDAs will be part of the undisclosed income under the Search and Seizure. Further, the government has inserted new section under the Income Tax Act for mandatory reporting requirements.
Gains from taxable Ulips to be treated as capital gains
The budget has now clarified that Ulips with annual premiums over ₹2.5 lakh will be taxable as capital assets and the redemption proceeds will be treated as capital gains and taxed under Section 112A.
New TDS, TCS limits for FY2025-26 for interest
Landlords, travellers and parents sending children abroad for education will also benefit
Budget 2025 provides relief to file updated returns
The deadline for filing updated tax returns has been extended from two to four years. This allows taxpayers more time to correct discrepancies in their income tax returns. However, delayed filings incur steep additional taxes of up to 70%. The updated returns cannot be used to claim missed tax benefits or adjust losses.
You won't save tax if salary hiked to Rs 14 lakh
The budget announcement stating that an annual income up to Rs 12 lakh will be tax-free, with additional benefits for salaried employees, has been well received. However, higher raises may push individuals into increased tax brackets. The finance minister also announced an increase in the tax rebate under Section 87A to Rs 60,000, effective in the new tax regime.
Latest tax rate, holding period for various assets
LTCG and STCG: Budget 2025 has made no change to the tax rate or holding period for long term capital gains (LTCG) and short term capital gains (STCG) for various assets like equities, bonds, debt mutual funds, unlisted shares, immovable property, etc. Read below to know more about tax rate and holding period of LTCG and STCG.
New vs old income tax regime: Which regime to choose?
New vs old tax regime: If you are still confused about which tax regime to choose after Budget 2025 proposals, here is how to choose between the old, new and proposal newer income tax slabs.
You can't get Section 87A tax rebate on capital gains
Budget 2025 has clarified that the Rs 60,000 tax rebate will no longer apply to income from capital gains or other sources taxed at special rates. Effective April 1, taxpayers under the new regime can claim a maximum rebate of Rs 60,000 for income up to Rs 12 lakh.
Homeowners get income tax relief on second house
Taxpayers will be able to claim nil valuation for two self-occupied properties instead of one. The reform will promote ownership for vacation homes or secondary residences as well.
Calculation of income tax on Rs 12.5 lakh for salaried
Income Tax Calculator for 12 Lakh Income: Under the new regime, the tax liability for individuals earning Rs 12 lakh or Rs 12.75 lakh (for salaried persons) is Rs 60,000, which is completely waived due to the rebate. Hence, the resulting tax is nil.
Will huge tax relief lead to lower household savings?
The lock-in periods of tax-saving instruments have forced a patient approach to investing. Tax relief will put more money in people’s pockets, but shifting away from tax-linked savings could affect long-term financial habits.
Personal finance tax highlights
With a promise to further simplify the current tax law by introducing a new Income-tax Bill next week, the taxpayer-friendly Budget included key changes in personal taxation designed to simplify compliance, modernise tax administration, and stimulate economic growth. The government continues to incentivise the new tax regime, making no changes to the existing income tax slabs under the old tax regime for individual taxpayers.
New Income Tax Bill coming next week, says FM
Finance Minister Nirmala Sitharaman will introduce a new Income Tax Bill next week, modelled on the Direct Tax Code. The aim is to simplify tax compliance for taxpayers and make the Income Tax Act easier to understand, enhancing readability and removing duplication of laws.
Budget 2025 exempts withdrawals from NSS a/cs from tax
Finance Minister Nirmala Sitharaman proposed exemptions for withdrawals from the National Savings Scheme (NSS) post-August 2024, with digitalized processes in place by 2026.
FM proposes to cover NPS Vatsalya under 80CCD(1B) tax break
Finance Minister Nirmala Sitharaman announced that NPS Vatsalaya subscribers would receive the same tax benefits under Section 80CCD(1B) as regular NPS subscribers. NPS Vatsalya is a pension scheme for minor children aimed at developing early saving habits for retirement. The proposal is pending parliamentary approval.
Time limit to file updated ITR extended in Budget 2025
Finance Minister Nirmala Sitharaman proposed to extend the time limit for filing updated tax returns from 24 months to 48 months in the Union Budget 2025.
TDS limit for interest income from bank FD hiked in Budget 2025
Budget 2025 proposes raising the TDS threshold on interest earned from fixed deposits by non-senior citizens from Rs 40,000 to Rs 50,000 per annum, effective April 1, 2025. TDS is deducted by banks on interest exceeding specified limits, with current rules imposing a 10% rate if PAN is available and 20% if not.
60%, 70% penal tax payable to file updated ITR
Budget 2025 extends the period for filing updated income tax returns from 24 months to 48 months. Taxpayers will now face higher penalties, with rates of 60% and 70% for returns filed in the third and fourth years, respectively.
Income tax benefit at different income levels in Budget 2025
Income tax relief in 2025: The finance minister has announced an increase in the tax rebate under Section 87A to Rs 60,000 from Rs 25,000 under new tax regime currently. The change in rates and slabs will benefit all such assessees who opt for the new tax regime in the upcoming fiscal year 2025-26.